How The Mayor Of Charlotte Allegedly Used A 'Feminine Hygiene Product' To Solicit Bribes

Charlotte, N.C., mayor Patrick Cannon was arrested on Wednesday
and charged with corruption.

According to
a statement from Anne Tompkins, the U.S. Attorney for the
Western District of North Carolina, a criminal complaint filed in
federal court Wednesday charged Cannon with "theft and bribery
concerning programs receiving federal funds, honest services wire
fraud and extortion under color of official right."

An affidavit filed in support of that complaint by FBI Special
Agent Eric Davis showed one of the allegations against Cannon is
a scheme to collect bribes using a "feminine hygiene product."

The affidavit accused Cannon of "soliciting and accepting things
of value — namely over $48,000 in cash, airline tickets, a hotel
room, and the use of a luxury apartment" from undercover FBI
agents posing as businesspeople who wanted Cannon to use his
position to help their various development projects. At least
$12,500 of that amount allegedly was given to Cannon as a loan to
help him start selling a mysterious feminine hygiene product
called HERS.

According to Davis, one of the undercover FBI agents posed as a
Chicago-based venture capitalist who wanted to build a nightclub
in Charlotte. Davis said that undercover agent had dinner with
Cannon on Dec. 12, 2012. At the meal, Davis said that
Cannon, who was then a city council member and mayor pro tem,
asked the undercover agent if the agent "would be willing to
invest in a business that Cannon was allegedly creating named
'HERS.'"

"HERS, according to Cannon, was a feminine hygiene product to be
marketed and sold in the United States," Davis said.

Davis said the undercover agent "agreed to provide Cannon a
$12,500 'zero percent return-on-investment' loan for the alleged
HERS product" in exchange for "his assistance with zoning and
permitting" for the planned nightclub.

"Cannon told [the undercover agent] that a full container of the
product was 'gonna cost me forty thousand dollars.' Cannon then
said, 'I can do something for about $12,500,'" Davis said.

On Jan. 8, 2013, Davis said Cannon sent the undercover
agent "some basic documents about HERS, including a
rudimentary slide show and spreadsheets" and told them
about "possible investment levels" starting with $12,500 for
one container of the product. The materials allegedly sent by
Cannon also said there were "different figures for larger or
multiple containers."

Davis' complaint said Cannon then met with the undercover agent
at his apartment and accepted the $12,500 in cash. According to
Davis, Cannon initially reacted to the money being placed on
a coffee table by looking "nervously toward the window" and
covering the cash with a folder. Cannon's apparent trepidation
caused the undercover agent to shut the window blinds. Once the
blinds were closed, Davis said Cannon "placed the money near his
ear and fanned the bills." In addition to giving Cannon the
money, Davis said the undercover agent discussed the help that he
expected to receive for the nightclub project.

The following day, Cannon allegedly called the undercover agent
and "offered to return" the "investment in HERS" if it "was
intended for Cannon's use of his official office." According to
the criminal complaint, Cannon said, "I'm not one of those
Chicago- or Detroit-type, uh, folk," and said he looked good "in
an orange necktie, but not an orange suit." However, in spite of
this conversation, Davis said Cannon "failed to show up" for
meetings on "two separate occasions" when the undercover agent
went to Charlotte to "discuss the payment and provide Cannon the
opportunity to return the bribe."

Though HERS was central to Cannon's alleged bribery scheme, Davis
said investigators were unable to find any evidence the mayor's
feminine hygiene product business existed.

"Based on the financial investigation to date, the FBI has been
unable to locate any bank account or corporate filing for HERS …
or any corporate filings linking Cannon to HERS," Davis
said. "The only potential financial transaction known to the
FBI linking Cannon to an investment in HERS is a $1,000 wire
transfer from Cannon's personal bank account to Taiwan dated May
8, 2012, marked 'R&D.'"

Business Insider called Cannon's office to ask about the charges
and whether he operates a feminine hygiene product business.
A spokeswoman for the mayor who identified herself only as
Phyllis said she would not comment on anything relating to the
allegations.